Bed & ISA or Bed & SIPP

Save tax on your existing investments

With taxes likely to increase it is vital to shelter as much of your capital from tax as possible using an ISA or SIPP.

But what happens if you simply don't want to invest any new money this tax year?

We have a solution if you hold share certificates or shares in the Vantage Share Account.

You can't transfer shares straight into an ISA or SIPP but there is another way, we call it a Bed & ISA or Bed & SIPP. You could sell your shares for free (see below) and use the proceeds to open (or top up) an ISA or a SIPP. You can then immediately buy the shares back, choose another investment or hold cash and there are four ways you could save tax.

Four ways to save tax

• Whether you buy your shares back or choose a different investment within an ISA or SIPP all future gains will be protected from tax.
• Selling shares at a loss will realise the loss which you can carry forward and offset against any gains in the future, effectively increasing your future capital gains tax allowance.
• This tax year you can make a capital gain of £10,100 without paying capital gains tax, if this allowance is not used it is lost forever. Selling shares in profit will crystallise this gain.
• If you invest in a SIPP you will also receive tax relief. You could turn £8,000 worth of shares in to £10,000 in your SIPP.

How much does Bed & ISA / Bed & SIPP cost?

When buying the same shares back there will be a small difference in price due to the bid offer spread. Therefore together with the commission and stamp duty this means you will not buy back the same number of shares.

How to do a Bed & ISA / Bed & SIPP?

You only need to give us one instruction for a Bed & ISA or Bed & SIPP we will do everything for you. Simply complete the relevant Bed & ISA / Bed & SIPP application form.

Please bear in mind that a Bed & SIPP is a pension contribution to help fund your retirement. You will not have access to your money until age 55 at the earliest (50 before April 2010). It is your responsibility to check that you are eligible. Please refer to the Key Features of the HL Vantage SIPP for details. If you have any questions please do not hesitate to call our pensions helpdesk on 0117 980 9926.